Part of equity markets, and equity being a volatile asset, the higher it goes without a strong base, the quicker the fall could be. Math has limitations in the market, as greed, fear, hope, and another rarely talked about emotion vanity, play a role in delivering the unexpected return, to the upside or downside. Gone are the days, when one can surely say MFs can deliver this much. Market has matured, and tech has done its part too. By one conservative estimate, one cannot expect more than 10%. Hence the inclusion of more capital, and managing it actively, even one chooses passive funds. And as one ages, the concept of opportunity cost starts to be visible, and the charm of equity may fade.
Many interconnected things, and as Buffett said, simple but easy.
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